Proposal vs. Bankruptcy
June 6th, 2007 by Questions
A consumer proposal stays on one\’s credit report for ~3 years after completion of the payments.
Bankruptcy appears on one\’s credit report for ~6 years after discharge.
If a consumer proposal outcome results in making monthly payments for 5 or more years – the credit report would show the proposal for 8 or more years.
Question: Why would someone in this situation (5+ year consumer proposal repayment) choose a consumer proposal over bankruptcy?
It seems that consumer proposal route (with 5 years repayment + 3 years credit report impact) would impact creditworthiness for much longer than a bankruptcy (6 years credit impact).